The Indian government is concerned about using cryptocurrency to facilitate illegal activities, but ignores many completely legal uses of cryptocurrency that already exist and will continue to develop in the future as well.
The EFF described the proposal as “drastic and excessive restrictions, which require strict supervision and control to meet”. Experts make four arguments:
1) Cryptocurrency promotes financial inclusion
In 2017, More than 10% Indian population was still Bankless, Namely, it did not have access to banking services, which were often expensive.
Experts say “cryptocurrency can help people gain access to financial services” and “cryptocurrency innovation also promises to fix other power imbalances”.
2) use “completely legal” cases
The EFF claims that the Indian government ignores all “completely legal” cases because of concerns about illegal activities.
3) Prohibition can harm people rather than protect them
The EFF states:
Cryptocurrency transactions in India will move to “illegal” sites which will be very poor in protecting users.
4) Complying with the ban will be painstaking
If the Indian government planned to implement its own Drakeon rules effectively, it would need to intercept, intercept and spy on internet traffic to detect or prevent cryptocurrency transactions.
In March, the Reuters Had stated that the government plans to occupy, issue, negotiate and prohibit Cryptocurrency mining, With potential penalties for investors who do not liquidate their assets.
According to the government, cryptocurrency can create financial instability and seeks to take this approach to protect investors from volatility.
Why are emerging countries like India
Who should buy bitcoin and not ban it?